R.P.Misra, J. - (1.) The present writ petition has been filed for quashing the order-dated 20.9.2006 (Annexure 1 to the writ petition) passed by Ghaziabad Urban Cooperative Bank Limited, Ghaziabad, respondent No.4. Further a writ in the nature of mandamus directing the respondents to issue ''No Objection Certificate' to the petitioner and also release the security pledged against the cash credit facility given by the respondent-Bank forthwith.
(2.) The facts arising out of the present writ petition are that the petitioner is a proprietorship concern, which is engaged in trading of Iron and Steel situated at Ghaziabad. A benefit of cash credit facility was availed from the respondent-Bank by the petitioner which was purely a part of commercial transaction between the parties for which a cash credit limit of Rs.85.00 lacs was given by the respondent-Bank in a separate Account in the year 2001. The petitioner from time to time availed different credits and also repaid the amounts in various installments. However, towards the end of the year 2003, the trading activities of the petitioner got adversely affected due to various circumstances and consequently the petitioner could not repay the installments payable, as per schedule. As the petitioner could not repay the amount within time, as such, a request was made that the balance amount may kindly be permitted to be deposited by the petitioner in easy installments. The request of the petitioner was considered and the petitioner was permitted to deposit the balance amount in 30 monthly installments of Rs.3,42,683.00 vide its letter dated 11.5.2004. A copy of the same has been filed as Annexure 2 to the writ petition. It has also been stated that this order dated 11.5.2004 has never been revoked or cancelled. There was some delay on the part of the petitioner in compliance of the terms and condition of the order dated 11.5.2004, therefore, a recovery citation was issued against the petitioner on 20.12.2004 calling upon the petitioner to pay a sum of Rs.79,01,345.00 along with the collection charges. Aggrieved by the aforesaid order, the petitioner filed a Writ Petition No.12561 of 2005 in which an interim order was passed on 2.3.2005 in favour of the petitioner. The same is being reproduced below:- "Heard Sri Nikhil Kumar, learned counsel for the petitioner and Sri Kandarp Narain Mishra, learned counsel for the respondent No.4. List the writ petition for admission on 17.3.2005. The petitioner is directed to produce a bank draft of Rs.25,00,000/- (Twenty five lacs) drawn in favour of respondent No.4, on the date fixed. If the bank draft is not produced on the date fixed, the writ petition shall stand dismissed. Till the date fixed, no coercive steps shall be taken against the petitioner."
(3.) The aforesaid order was subsequently modified on 18.3.2005. The same is also reproduced below:- "An undertaking has been filed by learned counsel for the petitioner in the shape of supplementary affidavit, whereby the petitioner has undertaken to deposit the balance of the amount as indicated in paragraph 4 of the supplementary affidavit. Accordingly, the first installment of Rs.25,00,000/- (Rs. Twenty five lacs) will be deposited by the petitioner by 30th April, 2005. The second installment of Rs.25,00,000/- (Rs. Twenty five lacs) will be deposited by 30th May, 2005 and the last installment for the remaining balance amount will be paid by 30th June, 2005. List for admission on 4.7.2005. The interim order dated 2.3.2005 shall remain operative till 4.7.2005. In the event of default, the writ petition shall stand dismissed.";